Tariffs Take Centre Stage in Election Showdown

An Australian journalist put Donald Trump on the spot last week, pressing the US President on his tariff plans and their impact on Australia’s trade, fresh off discussions with Prime Minister Anthony Albanese. The PM has slammed the 10% tariff on Aussie exports to the US as “unfriendly” and a threat to local industries. Gold and silver, vital to Australia’s export economy, are currently exempt, but there’s growing concern this could change. With US$2.9 billion in gold shipped to the US in January 2025, fuelled by investors rattled by global trade tensions, any policy shift could shake these markets.

The tariff reprieve has kept Australia’s gold and silver exports humming, with spot gold soaring to over US$3,500 an ounce last week amid trade war fears. Silver, at US$33, is treading water, hampered by shaky industrial demand. Albanese is scrambling to diversify export markets and strengthen anti-dumping measures to protect local producers, but tariffs on Asian partners like China could curb demand for Aussie commodities. Opposition leader Peter Dutton argues better diplomacy might have secured a full exemption, ramping up political heat ahead of the May 3 election.

For now, gold and silver exporters are riding high on US demand, but the threat of future tariffs looms large. Economists warn that while the 10% tariff’s direct hit is modest—about 0.2% of GDP—disrupted global trade could pressure commodity prices. Albanese’s pledge to avoid retaliatory tariffs aims to keep consumer costs down, but Australia’s gold and silver sectors are on edge, watching Trump’s next move closely.